Financial Analyis

Our talk is divided into 2 main parts: Ratio and Cash flow analysis. Firstly I will talk about how to measure and decompose ROE. Then Anuar and Kostas will look at another concepts of Ratio analysis and finally Min Xe going to explain cash flow analysis. And we will be glad to answer any questions that you may have at the end or during our presentation.

Financial analysis is the examination of a business from a variety of perspectives in order to fully understand the financial situation and determine how best to strengthen the business. Financial involves examining historical data to gain information about the current and future financial health of a company. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement.
There are two main tools of ﬁnancial analysis: ratio analysis and cash ﬂow analysis. Ratio analyses is used to evaluate relationships among financial statement items. it is Single and the most important technique of financial analysis in which quantities are converted into ratios for meaningful comparisons, with past ratios and ratios of other firms in the same or different industries. Ratio analysis determines trends and exposes strengths or weaknesses of a firm. Cash flow analysis - An examination of a company's cash inflows and outflows during a specific period. The analysis begins with a starting balance and generates an ending balance after accounting for all cash receipts and paid expenses during the period.
Let me start with ratio analyses. The main objective of ratio analysis is to show a firm’s relative strengths and weaknesses. Other objectives of ratio analysis include comparisons for a useful interpretation of financial statements, finding solutions to unfavorable financial statements and to help take corrective measures when, in comparison to other…...

...Financials
The four basic financial statements are; Balance Sheet, Income Statement, The Retained Earnings Statement and the Statement of Cash Flow.
The Balance Sheet reports assets and claims to assets at a specific point in time. Claims to assets are subdivided into two categories: claims of creditors which are called liabilities and claims of owners which are called stockholders’ equity.
The Income Statement shows how success or the failure of the company’s operations for a period of time.
The Retained Earnings Statement shows the amounts and causes of chanes in retained earnings during the period. The time period is the same as the covered by the income statement.
The Statement of Cash Flow is to provide financial information about the cash receipts and cash payments of a business for a specific period of time. This helps investors, creditors and other external users in their analysis of thhe company’s cash position, this statement reports the cash effects of the company’s operating, investing and financing activities. This statement also shows the net increase or decrease in cash during the period and the amount of cash at the end of the period.
Managers use financial statements to see the performance of the company. On the income statement, managers compare sales and expenses from one period to the previous period to identify potential problem areas. Employees take a look at the income statement to maintain responsibility for managing certain......

...INTRODUCTION
A financial plan is used to show the short and long-term financial requirements in order to start a new business or project. It also shows how a business or project is going to be financed (using internal and external resources). Therefore, the efficient financing of a financial plan will assist how successfully the business will be.
The financial plan is the final step in the preparation of a business plan. It is the most crucial aspect of the business plan and involves in performing the total project cost, choice of sources of financing and preparation of financial projections in terms of pro forma statement, which include the costing functional like cash flow, income statement and balance sheet for the purpose of finding out the financial position of the business. In addition, the financial plan should be supported by depreciation schedules for every fixed asset owned as well as amortization schedules for loan and hire purchases repayments. The financial plan is prepared after all budgets pertaining to marketing, operations and administrative aspects (known as operating budgets) are completed.
On the other hand, financial plan will give a detailed in the indication of the business performances, so that this information will assist the planning and control activities of business operations. It also helps management make policy decision. The financial information from the operation budgets is then translated or transform into financial budgets.......

...furniture manufacturer or focusing his efforts on marketing his patented furniture coating process.
Budget, Performance and Accounting
In order to make an informed decision, Navallez should begin by evaluating his budget. A budget is a quantitative action plan based on a company’s performance. A performance report provides information about variances in a company’s performance, which means it compares past budgets with actual financial results. When a performance report deviates from a budget (for example, if a company sees less income than the budget plans for), it becomes necessary to alter the budget to accommodate for such deviations (Horngren, 2008).
If Navallez used performance reports to fine-tune his budget, he could evaluate what his profits as well as his labor and production costs would be if he decided to sell coated furniture, maintain his high-end production while importing the Norwegian furniture, or invest in the laser technology.
Comparing the projections for the three options will give Navallez a clearer idea of what sort of financial outcome he should expect from each option. Equally important, though, is a careful evaluation of how much each option would cost him in terms of initial investments. This is especially true with the laser lathe, as the initial investment would be high should he choose to pursue this option. Additional accounting information necessary to make an informed decision is to compare potential capital and investment costs to......

...increase the overall level of direct investment; as well as investment in priority sectors which in turn pave the way for retail industry as well which deliver products and services for the society and individual consumers.4
B. Funding
In broadening economic participation, the government of South Africa is creating and enabling environment for small, micro, medium-sized and co-operative enterprises to contribute to the country’s GDP and an employment. The South African micro-finance Apex fund (samat) provides macro-finance to small and medium sized enterprises through a network of financial intermediaries across South Africa.1
 Khula enterprise finance – is engaged in facilitating access to lending through network of both the public and private sector partners, representing the interest of small and medium-sized enterprises.
 The Small Enterprise Development agency (seda) provides non-financial support service.
 The Isivande supplier fund aims to provide affordable enterprise loans, ranging from R 30,000 to R 5 million.
In general, the group is able to see that the funding institutions in South Africa were supporting and providing enterprises with funds of which retail industry has the access to benefit from it.
C. Grants and initiatives
As the relevant information from government released paper envisages, the Accelerated and Shared Growth Initiative for South Africa (ASGISA) identified “constraints on growth” that needed to be addressed to achieve its......

...About CISCO
* Established in 1984
* Primary product was Router
* In 1997 entered into elite club of fortune 500
* Among top 5 companies in return on investment and in return on assets
* Exceptional growth in 1998 as companies’ market capitalization passed $100 billion mark (15 times 1997 sales)
* Financial year divided into four quarters starting from 1st August
IT Department at CISCO
* Pete Solvik joined as CIO in January 1993
* Running a Unix based software package to support core operating and transactional process of the company
* Package was majorly supporting three functional areas
* Financials
* Manufacturing
* Order Entry
* Biggest customer of the software vendor
WHY ERP
* Company was able to sustain an annual growth rate of 80% and legacy system was not able to handle such load
* Frequent system outages
* Due to inability of system to perform a workaround caused corruption of database which resulted in SHUT DOWN OF COMPANY for two days
This was the defining moment for the company as after this top management decided to implement ERP. About a month after the shutdown they created a team to do an investigation to replace the application.
IMPLEMENTATION OF ERP – APPROACH
1) Selection of an ERP Product
Major decision which they took and reason behind that:
a) Whom to give responsibility from company
i. It was critically important project
ii. Requires heavy involvement......

...as a part of
fulfillment of the MBA programme. I have done my Summer Project at TATA STEEL
LIMITED, Jamshedpur.
This internship is a bridge between the institution and organization. This training
program is designed to give the future manager a feel about the corporate happenings in an
organization. These real life situations are entirely different from the stimulated exercise
enacted in an artificial environment inside the classroom, so that managers of tomorrow get
ideas about the real time business operations. The summer internship program helps us to
apply our theoretical knowledge into practical field.
Cost is the most important part of an organization. Managing of cost is important
because it has a direct impact on the financial resources of the organization. Excess
investment is not viable because the fund then will be held up in inventories and will not
be available for other important segment of the business. This has opened up further
scope and tremendous opportunities Cost and Works accountants to shoulder
responsibility as Cost and Management Accountants in accordance with new
dimensions and vision here in India and abroad. Members of this profession will be
the driving force in the team of management while in employment and a key
consultant, an effective Cost and Management Auditor and an appropriate advisor
in place.
Tata Steel is known not only for its professional management, but also for its
enlightened and progressive approach towards......

...have kids. This will allow parents to not look for care arrangements, because they can care for kids and classes from home at same time.
Thirdly, the disadvantage of taking classes online can be another reason not to take on ground classes. Online courses require self-discipline. If you have time to concentrate outside classroom, online classes may not be for you. Otherwise, students will procrastinate, and it will be harder to obtain an online degree. If you have question you can contact your professor through email or phone. Some professors provide their home phone number. With traditional based classes in a classroom setting, you have more access to professors and can even meet with them one-on-one after class. At some colleges, financial aid will not cover your tuition and fees, so it best to stick with local colleges. Online learning limit the amount of public speaking practice you can gain from in-class presentation discussion threads, which is naturally built for traditional structured classes. When you have discussion question with fellow classmates, you want the face of person, they can be from another city, state or country. Some traditional colleges have no facilities; for examples, like libraries, gym, student stores, computer labs, research labs, study areas and more. Therefore, online classes just have few of these sources. In a usual classroom situation, a student routine can be right away reviewed during question and informal test. But with distance......

...operation, in order to assess their past performance, current position in the market as well as where they want to be in future operations. One of the tool that can answear these issues are to have an internal and external audit.
” The marketing audit is a systematic examination of a business’s marketing environment, objectives, strategies and activities, with a view to identifying key strategic issues, problem areas and opportunities’ Jober and Ellis Chadwick, (2013) this will help management to identify “the future direction of the business” Jober and Ellis Chadwick, (2013). It plays a central role in decision making process about which product and what marketing mix to be offered to which market, thus has a direct implication of future financial performance of the business. A SWOT analysis would provide a simple method in assessing the effectiveness of the marketing audit.
The following are the SWOT analysis for KIA Motors demonstrate the external and internal audit factors, i.e social/cultural political/legal, economical, technological. Customer/competitor, dealers and distributors.
Kia Motors
Parent Company Hyundai Kia Automotive Group since 1944
Head office Seoul, Korea
Web Address Http://www.kia.com/
Category Passenger Cars, SUVs & trucks
Sector Automobile industry
Product Venga & Pop City (hybride), Sportag, Sedona, Kup Turbo
Tagline/ Slogan “The power to Surprise’’
Segment Target and Positioning
Segment Automobiles for individual, passenger......

...1. What is meant by the term “economic consequences” in accounting standard-setting?
A. Accounting standards can have detrimental impacts on the wealth levels of the providers of financial information. Financial accounting is objective; if a company is not doing well, that's what the financial statements must present.
"Economic consequences" is meant the impact of accounting reports on the decision making behavior of business, government, unions, investors and creditors. It is argued that the resulting behavior of these individuals and groups could be detrimental to the interests of other affected parties. And, the argument goes, accounting standard setters must take into consideration these allegedly detrimental consequences when deciding on accounting questions.
2. What economic consequences arguments are used in this letter?
A. The economic consequences arguments that are used in this letter is the considerations of the wide range of concerns that have been expressed about the derivatives and hedging proposal, including concerns related to the potential impact on the capital markets, the weakening of companies’ ability to manage risk and others. The letter is suggesting for fairness and transparency with regard to the proposal of FASB and be open for public debate and comments as this is important in businesses, the customer’s and the economy as a whole.
3. What do you believe is the main point of the letter?
A. The main point of the......

...performance of Australia
(Sources from: Index Mundi)
The graph has shown the GDP of Australia has fluctuated between the five years. For 2003 the GDP is 3.60%. In 2004, the GDP is about 3.00% and then increasing to 3.50% in 2005. The GDP in 2006 and 2007 become moderately which is about 2.70%. Australia’s account deficit for the 2007- 2008 financial year, , according to the Australian Bureau of Statistics, the absence of a successful export-oriented manufacturing industry, a real estate bubble, and high levels of net foreign debt owed by the private sector.
Inflation rate is highest in 2007 which is 3.80 %. In two year, 2004 and 2003 it unchanged which is 2.80%. For 2005 the inflation rate is 2.30% increase slightly to 2.70% in 2006. The figure in 2007 show that increase tremendously by 3.80%.
The unemployment rate shows that in year 2003 is the highest rate which is 6.30 %. In 2004 is 6.00% decrease by 0.30% from previous year. For 2005 and 2006 is not change which is 5.10%. In 2007 decrease to 4.90% countries have provide more job opportunity to the citizen such as in the service sector including tourism, education and financial services.
High food and fuel costs in the first half of this year have already pushed the consumer price index to an annual rate of 4.0 percent as at June 2006. Growth of demand in Australia, against the background of an economy "Operating with limited spare capacity," had contributed to increased inflationary pressures this......

...that is reliable and safe to use. They have been able to maintain and improve on their customer loyalty not forgetting the brand loyalty. The company has both female and male customers. It is currently focused on creating light weight, stylish motorcycles that appeal to this group.
Some of the threats experienced by the company include the increase in tariffs that make it difficult for them to reach their European customers. They also keep their customers in a waiting list for very long periods and may be at a risk of losing some customers to their competitors. Appendixes created on the financial statements show that the company is doing wonderfully and is expected to increase its sales over time.
Introduction
started 1903
Main station Milwaukee
Net sales for year 2001: $3,353.4 million
Net Income for 2001: $467.7 million
Business Units: Harley-Davidson Motor Co.,
Eaglemark Financial Services Inc.
Number of Employees: 8,100
Dealers: 1,200 worldwide
Year Motorcycles Production : 275,000 in 2002; next targeting 290,000 by 2003
Harley Davidson is the world’s producer and supplier of heavy weight motorcycles in the world according to its market share. It has already taken over half the market share and about one third of the rest of the global supply. It is a sign of the free spirit possessed by the company. It is known as the best producer in America and this is why its customers are proud of being associated with it. It has currently opened a clothing......

...Running head: PLASTIC COMPANY REVISED HR ANALYSIS 1
Plastic Company Revised HR Analyis
Learning Team 1
Dr. Kendra Swensen
Managing Human Resources
September 2,2010
Plastic Company Revised HR Analysi 2
Abstract
In this narrative style paper we will be discussing human resource (HR) solutions, methods, and potential problems involving Plastic, a plastic manufacturing company. The company originally started over 15 years ago and has grown to be a diverse organization encompassing employees from different nationalities and ethnicities. After surviving a decline in the industry, Plastic is now looking to possibly offer employment opportunities to new applicants. Newly hired HR manager Paul must include detailed job requirements for applicants while abiding by employment laws and regulations. Paul will also be tasked with prioritizing job training (aside from safety training), updating manager job descriptions, and analyzing the efficient way to recruit new applicants.
Keywords: diversity, ethnicities, nationalities, human resources (HR), and job description.
Plastic Company Revised HR Analysis 3
Plastic Industry Company has been faced with a decrease in growth and development due to the recent downturn in the overall economy and layoff. Plastic’s employees are primarily Caucasian and African American there are two Russians and on Vietnamese. As a result the Human Resource......